Retracement is started

Aug 26, 2021

Morning everybody,

so, downside reaction on resistance is started. As context stands bullish, we're mostly interested where an how to buy rather than to sell. From that standpoint, first point that it makes sense to consider is 43.5-44K area. Now, based on AB-CD shape on 1H chart we could calculate the targets. First is OP stands around 46K, but taking in consideration the speed of CD leg most probable that it will be passed. Thus, the first one that it makes sense to focus on is 1.618 XOP extension at 43.8K.

It is interesting that XOP leads us to potential neckline of greater H&S pattern on 4H chart. But this will the next story... Maybe it will not be formed at all. We'll see. With the Jackson Hole ahead everything is possible...

Take care.